Frequently Asked Questions (FAQs) - Franchising

Sometimes, we cannot answer all your queries immediately, in order to quickly get a response, we have compiled questions normally asked us and we try to answer them as best we can. However, if you still need to ask us questions not stated here, you may use the contact forms under the Contact Us option. All about Franchising

Franchising is a method employed to quickly start a business. Apotential franchiser applies for a license from a Franchisor to utilize it's brand, design and system. By taking on a franchise, thefranchisee becomes a partner of the Franchisor in terms of helpingbuild the brand. "Franchising is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage piece of gross sales or gross profits as well as the annual fees. Various tangibles and intangibles such as national or international advertising, training.and other support services are commonly made available by thefranchisor, and may indeed be required by the franchisor, whichgenerally requires audited books,and may subject the franchisee or the outlet to periodic and surprisespot checks. Failure of such tests typically involve non-renewal orcancellation of franchise rights. A business operated under a franchise arrangement is often called a chain store, franchise outlet, or simply franchise." (courtesy of Wikipedia )

Franchising is not buying a business and leaving the franchisor to manage the business. Franchising requires the franchisee to fully manage the venture. Franchising does not guarantee success. Although, franchising gives the franchisee the advantage of having a reputable brand as a business, like any kind of business venture, it is not a guarantee of success. Success of any business venture is dependent on a lot of factors such as the environment, economy, management of the venture, etc. Franchising is not a quick-rich scheme. Franchising is a legitimate method of building a business and should not be considered as an "easy-money" venture.

If you are not so well-versed in starting and operating a business, Franchising provides a good alternative to jump start your business. Franchisors have invested on their system, training and building the brand. Franchising also has the advantage of starting a business with a trusted and known brand.

The following list are some questions to ask a franchisor to evaluate a potential franchise.

Disclaimer: This list is not the only list to follow, but it may be used as a guideline.

What is the track record of the company? A mature company would be a good indicator of stability and consistency.

What are the products of the company? It is good to know the products of the company for familiarity in the market.

How long is the market "shelf life" of the product? A good product should be able to withstand the test of time, and not just be the "flavor of the month" product.

What kind of support can the company provide for the franchisee? A good Back-end support is very important as a good Front-end can be supported only by a good Back-End.

What kind of investment am I to commit? Investment does not only entail money, but how much effort and time, are you willing to invest to the franchise.

What kind of returns should I expect? This is very hard to quantify and is very subjective. In general, you can compare your leaving your money in the bank for the same period and computing how much interest you will earn, now compare that with placing your money in a business and projecting how much you can earn for the same period.

Are their risks to getting a franchise? Yes, there are always risks in business, but with a franchise you improve the odds of success by investing in an established and trusted brand.

Hen Lin has been in the business of providing good, quality food for more than 30 years. We have over 200 stores operating within the metropolis and nearby provinces. We have been awarded numerously including the Agora Award and the Entrepreneur of the Year award for excellence.

We have also invested heavily on our commisary and training facilities to ensure good, quality food consistency through out the whole chain. We are constantly improving ourselves, and are still employing new technologies to improve our business strategy.

Location, Location, Location! It can't be emphasized, the importance of choosing a site. The location might make or break any kind of business. Although, a lot of factors go into choosing a location, in our experience, the following are some key points in choosing a location for Hen Lin:

Total investment differs for every store. We treat each store independently from each other, so it is difficult to give a single figure as total investment. If you want to know more, please contact us through our Franchise Inquiry Form.

No, getting a franchise is not a guarantee of success. As in most businesses, success is dependent on a lot of factors such as but not limited to location, management, personnel, customers, products, market forces, etc.

We can only guarantee the quality of our products, the resilience of our brand, and the support of our franchisees as our partners during the course of the Franchise Agreement.

After being awarded with a Franchise, a Franchisee is responsible for the overall management of his or her business. This includes but is not limited to the management of the overall operations, hiring of personnel, and control of inventory.

The Franchisee is also bound by the Franchise Agreement to uphold all the provisions within the contract to promote and protect the Hen Lin brand.